Ur-Energy April 2012 Corporate Presentation


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Ur-Energy April 2012 Corporate Presentation

  1. 1. N YSE Am ex : UR G TSX : UR E Ur-Energy is an Advanced Pre-Production Junior Mining Company Focused on development of low-cost uranium production properties in the United States. Corporate Objectives: •Resource Growth •Strategic OpportunitiesCorporate PresentationApril 2012
  2. 2. DisclaimerThis presentation contains “forward-looking statements,” within the meaning of applicable securities laws, regarding events or conditions thatmay occur in the future. Such statements include without limitation the long term effects on the uranium market of events in Japan in 2011including supply and demand projection; the Company’s timeframe for events leading to and culminating in the commencement of production atLost Creek; the technical and economic viability of the Lost Creek Project (including the projections contained in the preliminary analysis ofeconomics of the Lost Creek Project); receipt of (and related timing of) Record of Decision from the U.S. Bureau of Land Management related tothe Lost Creek Property; the Lost Creek Project will advance to production and the production timeline; production rates, timetables at the LostCreek Project; the Company’s procurement and construction plans at the Lost Creek Project; the ability to complete additional favorableuranium sales agreements; the potential of exploration targets throughout the Lost Creek Property; and the further exploration, development andpermitting of exploration projects including Lost Soldier, the exploration properties in Nebraska and Screech Lake. These statements are basedon current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business,economic and competitive risks, uncertainties and contingencies. Numerous factors could cause actual events to differ materially from those inthe forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherentin exploration activities; volatility and sensitivity to market prices for uranium; volatility and sensitivity to capital market fluctuations; the impact ofexploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates;environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deteriorationin political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclearpower; weather and other natural phenomena; delays in obtaining or failures to obtain required governmental, environmental or other projectapprovals; and other exploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes that theassumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which onlyapply as of the date of this presentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward-looking statement,whether as a result of new information, future events or otherwise.Cautionary Note Regarding Projections: Similarly, this presentation also may contain projections relating to an extended future period and,accordingly, the estimates and assumptions underlying the projections are inherently highly uncertain, based on events that have not takenplace, and are subject to significant economic, financial, regulatory, competitive and other uncertainties and contingencies beyond the control ofUr-Energy Inc. Further, given the nature of the Companys business and industry that is subject to a number of significant risk factors, there canbe no assurance that the projections can be or will be realized. It is probable that the actual results and outcomes will differ, possibly materially,from those projected.The attention of investors is drawn to the Risk Factors set out in the Companys Annual Information Form and Annual Report on Form 40-F,dated March 2, 2012, which are filed, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities andExchange Commission on EDGAR. (www.sedar.com and http://www.sec.gov/edgar.shtml)Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources: the information presented usesthe terms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognizedand required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. United Statesinvestors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineralreserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economicallyor legally minable.John Cooper, SME Registered Member, a Professional Geologist, and Qualified Person as defined by National Instrument 43-101,reviewed the technical information contained in this presentation. 2 N YSE Am ex : UR G TSX : UR E
  3. 3. Ur-Energy At A Glance Re-Rating is Likely in 2012 as URG Nears Production Advanced Pre-Production Project at Lost Creek, Wyoming One regulatory approval remaining Construction anticipated to commence this summer Low-cost uranium production center that will be cash-flow positive in current market Expanding Resources Through Acquisition and Exploration Low Technical, Political and Regulatory Risk Strategy Secure Future Revenue Stream Through Sales Agreements Strong Balance SheetSee Disclaimer re Forward-looking Statements and Projections (slide 2) 3 N YSE Am ex : UR G TSX : UR E
  4. 4. Ur-Energy’s Market PositionShare Capital & Cash Position NYSE Amex: URGAs of 03/02/12Shares Outstanding 121.1MStock Options & RSUs 8.3MFully Diluted 129.4MMarket Cap (04/05/12) C$141.6MCash (12/31/12) C$23.1MFinancing (2/23/12) (Gross) C$17.25MDebt $0Cash per share (12/31/12) ~C$0.22Share price (04/05/12) C$1.1752 Week Range C$.79 - $1.77 TSX: UREAvg. Daily Volume ~610,000(3-mo URG & URE 04/05/12)Member of Russell 3000 & 2000 and S&P/TSX SmallCap IndexesGeographical Distribution as of 6/30/11United States ~48%Canada ~38%Other ~14% See Disclaimer re Forward-looking Statements and Projections (slide 2) 4 N YSE Am ex : UR G TSX : UR E
  5. 5. Analyst CoverageUnited StatesGVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392Rodman & Renshaw Wayne Atwell (New York, NY) 1 212-356-0513CanadaDundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082Haywood Securities Geordie Mark (Vancouver, BC) 1 604-697-6112Raymond James 1 604-659-8282RBC Capital Adam Schatzker (Toronto, ON) 1 416-842-7850Ur-Energy Inc. is followed by the analysts listed above. This list, including the firms and individual analysts at these firms,is subject to change at any time without notice. Please note that any opinions, estimates, forecasts, conclusions orrecommendations regarding Ur-Energy Inc. performance made by these analysts are theirs alone and do not representopinions, estimates, forecasts, conclusions, recommendations or predictions of Ur-Energy Inc. or its management. Ur-Energy Inc. does not by its reference above or in any other manner imply its endorsement of or concurrence with suchinformation, conclusions or recommendations. 5 N YSE Am ex : UR G TSX : UR E
  6. 6. Experienced Management Team Board of Directors Ex ecutive Directors Wayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer) Jeffrey T. Klenda*, Board Chairman, Executive Director (Mining Finance) Non-Ex ecutive Directors W. William Boberg*, Former President & CEO (Professional Geologist) James M. Franklin*, Chair-Technical Committee (Professional Geologist) Paul Macdonell*, Chair-Compensation and Corp. Governance & Nominating Committees (Senior Federal Mediator) Thomas H. Parker, Chair-Audit Committee (Professional Engineer) Officers Roger L. Smith, Chief Financial Officer & Chief Administrative Officer(CPA & MBA) Steven M. Hatten, VP Operations (Mining Engineer) John W. Cash, VP Regulatory Affairs, Exploration & Geology (Geologist & Geophysicist) Penne A. Goplerud, Corporate Secretary & General Counsel (JD)* Founding Directors 6 N YSE Am ex : UR G TSX : UR E
  7. 7. Industry Leading TeamHighly Experienced Technical and ManagementProfessionals98 Years of Direct Uranium Production Experience ISR operations experience – Nebraska, Texas & Wyoming 7 N YSE Am ex : UR G TSX : UR E
  8. 8. Nuclear Markets Remain Positive US NRC approved four new construction & operation licenses this year (2012) First nuclear power plant licenses in 30+ years HEU Agreement to expire next year Provides 13% of world and 45% of US annual supply 63 new reactors under construction Russia, China and India represent 50% of new builds and have reaffirmed support for nuclear power Saudi Arabia & the United Kingdom combined have announced plans to build 24 new reactors See Disclaimer re Forward-looking Statements and Projections (slide 2) 8 N YSE Am ex : UR G TSX : UR E
  9. 9. Growth of Nuclear Will Continue Historically, growth of nuclear power continued despite major accidents Growth expected to continue beyond Fukushima at 10 reactors per year 10 years, 10.2 reactors per yearNumber of Reactors 22 years, 4 reactors per year 8 years, 21.9 reactors per year Fukushima 13 years, 11.3reactors Chernobyl per year Three Mile Island Source: W orld Nuclear Association See Disclaimer re Forward-looking Statements and Projections (slide 2) 9 N YSE Am ex : UR G TSX : UR E
  10. 10. The US Uranium Market The US mines produce ~ 4M lbs of uranium/yr1 The US utilities consume 55M lbs of uranium/yr1 October 2011 Nuclear Energy Institute survey shows two-thirds of Americans support nuclear energy Ur-Energy is well positioned to capitalize on this opportunity Chart from U.S . Energy Information Administration 1 – U.S. Energy Information AdministrationSee Disclaimer re Forward-looking Statements and Projections (slide 2) 10 N YSE Am ex : UR G TSX : UR E
  11. 11. Sound Marketing StrategyBalancing strategic andeconomic benefits of thespot/term ratioDe-risking by securing futurerevenue stream in an uncertainmarketSecuring pricing that supportsdevelopment plans for the LostCreek ProjectTargeting contracts with North American utilitiesExclusive representation by NuCore Energy, LLC in off-takepurchase agreement negotiations See Disclaimer re Forward-looking Statements and Projections (slide 2) 11 N YSE Am ex : UR G TSX : UR E
  12. 12. Ur-Energy’s US Projects 12 N YSE Am ex : UR G TSX : UR E
  13. 13. In-Situ Recovery (ISR) Uranium Mining Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs 13 N YSE Am ex : UR G TSX : UR E
  14. 14. ISR – Low Impact Mining CAMECO Smith Ranch ISR Mine Powder River Basin, Wyoming 14 N YSE Am ex : UR G TSX : UR E
  15. 15. The Lost Creek PropertyUpgrade to the NI 43-101 Mineral Resource Estimate on the LostCreek Property (as of April 4, 2012)Measured: 4.20 Mlbs eU3O8 (in 3.85 Mt @ 0.055%)Indicated: 4.15 Mlbs eU3O8 (in 3.96 Mt @ 0.053%)Inferred: 2.87 Mlbs eU3O8 (in 2.99 Mt @ 0.049%)* Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3 Exploration targets within the Lost Creek Project and adjoining projects provide potential of additional resources U3O8 Lost Creek Project – 4,254 acres Adjoining Projects – 39,300 acres Many of these exploration targets remain conceptual in nature. There has been insufficient exploration to define mineral resource estimates at all such exploration targets. It is uncertain if further exploration will result in the additional target areas being delineated as further mineral resource. See Disclaimer re Forward-looking Statements and Projections (slide 2) 15 N YSE Am ex : UR G TSX : UR E
  16. 16. Lost CreekAdjacent to Rio Tinto Sweetwater Mine Complex (NRC licensed conventional uranium mill) JK NYSE Amex: URG TSX: URE
  17. 17. 2012 Property AcquisitionAsset Exchange Added ~5,250 acres No Cash CostAdditional 253 new mining claims stakedResource gain (as of April 4, 2012) Measured: 1.26 Mlbs eU3O8 (in 1.16 Mt @ 0.054%) Indicated: 1.33 Mlbs eU3O8 (in 1.55 Mt @ 0.043%) Inferred: 0.85 Mlbs eU3O8 (in 0.93 Mt @ 0.048%) * Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3Ur-Energy possesses ~1,100 holes ofhistoric drill data on new landsProperties directly adjacent with LostCreek Project boundariesUpdated PEA incorporating newacquisition to be filed See Disclaimer re Forward-looking Statements and Projections (slide 2) 17 N YSE Am ex : UR G TSX : UR E
  18. 18. Preliminary Economic Assessment Feb-2012 PEA* Upgrades Resources, Confirms Economics Mineral Resource Increase from 2011 PA 11% I ncrease in Measured and Indicated Resources 159% I ncrease in Inferred Resources (includes first resource estimate at each of LC North and LC South) Estimates Operating Costs less than US$20/ lb Lowest quartile of all uranium producers Project Internal Rate of Return (I RR ) at 91% Pre-Production Capital Costs of Only US$35M Rem aining Lowest Quartile of all developing uranium production facilities Total project capital cost of US$59M * N I 43-101 P relim inary Econom ic Assessm ent of the Lost Creek P roperty, Sw eetw ater County W yom ing – (February 29, 2012) (posted on SEDAR and EDGAR ) Cautionary Statement: This PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The estimated mineral recovery used in this PEA is based on both site-specific laboratory recovery data as well as URE personnel and industry experience at similar facilities. There can be no assurance that recovery at this level will be achieved. See Disclaimer re Forward-looking Statements and Projections (slide 2) 18 N YSE Am ex : UR G TSX : UR E
  19. 19. US$24M in CapEx Completed Mine Units 1 & 2 Delineated MU #1 Monitor Well Ring Completed Plant Engineering Completed Drilled and Tested Class I UIC Well Ordered Key Plant Equipment Ur-Energy’s Ion Exchange Columns Ion Exchange & Elution Columns Filter Presses Process Tanks Reverse Osmosis Design/Build of Header House Building Interior of Ur-Energy’s Prototype Header House 19 N YSE Am ex : UR G TSX : UR E
  20. 20. Lost Creek Path to Production Licenses and Permits Received US NRC License Wyoming DEQ Permit to Mine – Includes Approval of First Mine Unit WDEQ Class I UIC Permit (water disposal well) EPA Aquifer Exemption One Remaining Regulatory Approval Needed US Bureau of Land Management Plan of Operations Environmental review process underway Record of Decision anticipated summer 2012 Construction: 6-9 month build-out First Production Planned for second quarter next year Ramp-up to 1 million pound per year production rate See Disclaimer re Forward-looking Statements and Projections (slide 2) 20 N YSE Am ex : UR G TSX : UR E
  21. 21. Re-Rating Potential Stage EV/LbURG Upside vs. Producers Producers $4.60  3X (+$3.13/Lb) URG $1.47 Source: Dundee (February 29, 2012) As Ur-Energy Nears Production, Re-rating is Likely See Disclaimer re Forward-looking Statements and Projections (slide 2) 21 N YSE Am ex : UR G TSX : UR E
  22. 22. Future Growth Opportunities Resource Expansion Through Ongoing Exploration and Acquisition Efforts Increase minable resources that will be accessible to the Lost Creek processing plant Growth in Production Profile Development of currently held properties Acquisitions of new properties Strategic alliances Exploration Properties in Western Nebraska Monetizing Historic DatabasesSee Disclaimer re Forward-looking Statements and Projections (slide 2) 22 N YSE Am ex : UR G TSX : UR E
  23. 23. Lost Soldier – 12.2M M&I lbs U3O8 Can be Licensed with NRC as Amendment to Lost Creek License NI 43-101 Resource | July 2006 Measured & Indicated: 12.2 Mlbs eU3O8 (in 9.4 Mt @ 0.065%) Inferred: 1.8 Mlbs eU3O8 (in1.6 Mt @ 0.055%) M & I Resource average GT of 1.1 (17.2 ft @ 0.065% U3O8) Shallow: 240 feet deep Over 3,700 drill holes define deposit (Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR) See Disclaimer re Forward-looking Statements and Projections (slide 2) 23 N YSE Am ex : UR G TSX : UR E
  24. 24. Screech Lake, Thelon Basin, NWT Completed Audio-Magnetotelluric Geophysical Survey, and Soil Gas Hydrocarbon and Enzyme Leach Soil Geochemistry Analyses to Better Define Drill Targets MegaTEM Survey Screech Lake See Disclaimer re Forward-looking Statements and Projections (slide 2) 0 4 Kilometers 24 N YSE Am ex : UR G TSX : UR E
  25. 25. Ur-Energy’s News Flow Lost Creek Property PEA Update To include new resources with updated economics Final Regulatory Approval BLM decision expected summer 2012 Construction at Lost Creek Project Summer 2012 Expanding Resources Acquisition ExplorationSee Disclaimer re Forward-looking Statements and Projections (slide 2) 25 N YSE Am ex : UR G TSX : UR E
  26. 26. Ur-Energy – Right Now!Experienced Technical & Management TeamStrong Balance Sheet C$23.1 Million (12/31/11) C$17.25 Million financing completed in 2012Advanced Pre-Production Project at Lost Creek Low-cost uranium production center Plant construction planned to begin summer 2012 Technical, political and regulatory certaintySigned Multiple Long-Term Uranium Sales Agreements Reducing company exposure to volatile marketplaceRe-rating Likely as Ur-Energy Nears Production See Disclaimer re Forward-looking Statements and Projections (slide 2) 26 N YSE Am ex : UR G TSX : UR E
  27. 27. Ur-Energy - The Right People. The Right Projects. Right Now.  For more information, please contact: Wayne Heili, President, Chief Executive Officer & Director Jeff Klenda, Board Chairman & Director Rich Boberg, Director of Public Relations  By Mail: Ur-Energy Corporate Office 10758 W. Centennial Rd., Ste. 200 Littleton, CO 80127 USA  By Phone: Office (720) 981-4588 Toll-Free (866) 981-4588 Fax (720) 981-5643  By E-mail: wayne.heili@ur-energyusa.com jeff.klenda@ur-energyusa.com rich.boberg@ur-energyusa.com 27 NYSE Amex:: URG N YSE Am ex UR G TSX::URE TSX UR E